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A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash $

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A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash $ 94, 800 $ 24 ,000 Accounts receivable, net 41, 000 51,000 Inventory 85, 800 95, 800 Prepaid expenses 5, 400 4, 200 Total current assets 227, 000 175, 000 Furniture 109,000 119,000 Accumulated depreciation-Furniture (17, 000 (9, 000) Total assets $ 319 , 000 $ 285, 000 Liabilities and Equity Accounts payable $ 15, 000 $ 21, 000 Wages payable 9,000 5,000 Income taxes payable 1, 400 2, 600 Total current liabilities 25, 400 28 , 600 Notes payable (long-term) 29,000 69,000 Total liabilities 54, 400 97, 600 Equity Common stock, $5 par value 229, 000 179, 000 Retained earnings 35, 600 8, 400 Total liabilities and equity $ 319, 000 $ 285, 000 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales $ 488, 000 Cost of goods sold 314, 000 Gross profit 174 ,000 Operating expenses (excluding depreciation) 89 , 100 Depreciation expense 37 , 600 Income before taxes 47 , 300 Income taxes expense 17 , 300 Net income $ 30,000 Required: Use the indirect method to prepare the operating activities section of Cruz's statement of cash flows. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities Net income $ 30,000 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation $ 37,600 Changes in current operating assets and liabilities Accounts receivable decrease 10,000 Inventory decrease 10,000 Prepaid expense increase (1,200) Accounts payable decrease (6,000) Wages payable increase 4,000 Income taxes payable decrease (1,200) 53,200 Net cash provided by operating activities $ 83,200Comparative Balance Sheets At December 31 2021 2020 Assets Cash 94 , 800 24, 000 Accounts receivable, net 41, 000 51,000 Inventory 85 , 800 95, 800 Prepaid expenses 5, 400 4, 200 Total current assets 227, 000 175 000 Furniture 109 , 000 119,000 Accumulated depreciation-Furniture (17, 000) (9, 600) Total assets $ 319, 000 $ 285, 000 Liabilities and Equity Accounts payable $ 15, 000 21,000 Wages payable 9,000 5,000 Income taxes payable 1, 400 2, 600 Total current liabilities 25, 400 28 , 600 Notes payable (long-term) 29, 000 69, 000 Total liabilities 54, 400 97, 600 Equity Common stock, $5 par value 229, 000 179, 000 Retained earnings 35 , 600 8 , 400 Total liabilities and equity $ 319 , 000 $ 285, 000 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales $ 488, 000 Cost of goods sold 314, 000 Gross profit 174,000 Operating expenses (excluding depreciation) 89 , 100 Depreciation expense 37 , 600 Income before taxes 7, 300 Income taxes expense 17, 300 Net income $ 30, 000 Furniture costing $55,000 is sold at its book value in 2021. Acquisitions of furniture total $45,000 cash, on which no depreciation is necessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale of furniture. Furniture Beginning balance 119,000 Purchase of assets 45,000 Sale of assets 55,000 Ending balance 109,000 Accumulated Depreciation Beginning balance 9,000 2021 depreciation 37,600 Sale of assets 29,600 Ending balance 17.000 Cost $ 55,000 Accumulated depreciation 29,600 Book value (Cash received) $ 25,400CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash $ 94 , 800 $ 24,000 Accounts receivable, net 41, 000 51,000 Inventory 85, 800 95, 800 Prepaid expenses 5,400 4, 200 Total current assets 227,000 175, 000 Furniture 109 ,000 19,000 Accumulated depreciation-Furniture (17 000) (9, 000) Total assets $ 319, 000 $ 285 , 000 Liabilities and Equity Accounts payable 15 , 000 $ 21,000 Wages payable 9, 000 5,000 Income taxes payable 1, 400 2, 600 Total current liabilities 25, 400 28, 600 Notes payable (long-term) 29 , 000 59,000 Total liabilities 54 , 400 97, 600 Equity Common stock, $5 par value 229, 000 179,000 Retained earnings 35 , 600 8 , 400 Total liabilities and equity $ 319, 000 $ 285,000 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales $ 488 ,000 Cost of goods sold 314, 000 Gross profit 174,000 Operating expenses (excluding depreciation) 89, 100 Depreciation expense 37 , 600 Income before taxes 47, 300 Income taxes expense 17, 300 Net income $ 30. 000 1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2021? 2. Assume that no additional notes payable are issued in 2021. What cash amount is paid to reduce the notes payable balance in 2021? Answer is complete and correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2021? Retained Earnings Beginning balance 8,400 Dividends paid 2.800 2021 Net income 30,000 Ending balance 35,600A comparative balance sheet and income statement is shown for Cruz, Incorporated. CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash $ 94, 800 $ 24, 000 Accounts receivable, net 41, 000 51, 000 Inventory 85 , 800 95, 800 Prepaid expenses 5 , 400 4 , 200 Total current assets 227,000 175, 000 Furniture 109, 000 19,000 Accumulated depreciation Furniture 17, 000 (9 , 000) Total assets $ 319, 000 $ 285,000 Liabilities and Equity Accounts payable $ 15 , 000 21, 000 Wages payable 9, 000 5 ,000 Income taxes payable 1.400 2, 600 Total current liabilities 25 , 400 28 , 600 Notes payable ( long-term) 29 , 000 69, 000 Total liabilities 54, 400 97 ,600 Equity Common stock, $5 par value 229 , 000 179,000 Retained earnings 35 , 600 8 , 400 Total liabilities and equity $ 319,000 $ 285,000 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales $ 488,000 Cost of goods sold 314/000 Gross profit 174, 000 Operating expenses (excluding depreciation) 89, 100 Depreciation expense 37 , 600 Income before taxes 47.300 Income taxes expense 17 , 300 Net income $ 30,000 1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2021? 2. Assume that no additional notes payable are issued in 2021. What cash amount is paid to reduce the notes payable balance in 2021? Answer is complete and correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that no additional notes payable are issued in 2021. What cash amount is paid to reduce the notes payable balance in 2021? Notes Payable Beginning balance 69,000 Payment on notes payable 40,000 Ending balance 29,000CRUZ, INC. Statement of Cash Flows For the Year Ended December 31, 2019 QS 12-7 Cash flows from operating activities Net Income Adjustments to reconcile net income to operating cash flow Income statement items not affecting cash Changes in current operating assets and liabilities Net cash operating activities 12-13 Cash flows from Investing activities Net cash investing activities 2-17 Cash flows from financing activities Net cash financing activities Net In cash Cash balance at prior year-end Cash balance at current year-end

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